Scorpio Gold Corporation

TSX VENTURE : SGN


Scorpio Gold Corporation

April 23, 2014 08:00 ET

Scorpio Gold Produces 10,294 Ounces of Gold in First Quarter 2014 at the Mineral Ridge Operation, Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 23, 2014) - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX VENTURE:SGN) announces its operating results for the first quarter ("Q1") of 2014 at its 70% owned Mineral Ridge project, located in Nevada.

Production at Mineral Ridge in Q1 2014 totalled 10,294 ounces of gold and 5,113 ounces of silver.

Peter J. Hawley, CEO, reports, "The Mineral Ridge operation posted another strong quarter with ore production and processing throughput running above forecast and head grades in line with our expectation for Q1 2014. This is a great start to the year and puts Scorpio Gold in a very good position to meet our 2014 production forecast of 40,000 to 45,000 ounces of gold."

Key Operating Statistics

Q1 2014 Q1 2013 % Change
Mining operations
Drinkwater pit
Ore tonnes mined 154,952 163,542 -5.3 %
Waste tonnes mined 398,233 613,066 -35.0 %
Total mined 553,185 776,608 -28.8 %
Strip Ratio 2.6 3.7 -29.7 %
Mary pit
Ore tonnes mined 92,748 34,941 165.4 %
Waste tonnes mined 415,361 327,015 27.0 %
Total mined 508,109 361,956 40.4 %
Strip Ratio 4.5 9.4 -52.1 %
Total producing pits
Ore tonnes mined 247,700 198,483 24.8 %
Waste tonnes mined 813,594 940,081 -13.5 %
Total mined 1,061,294 1,138,564 -6.8 %
Strip Ratio 3.3 4.7 -29.8 %
Pits under development
Waste tonnes mined (pre-stripping) 257,396 -
Total mining operations
Ore tonnes mined 247,700 198,483 24.8 %
Waste tonnes mined 1,070,990 940,081 13.9 %
Total mined 1,318,690 1,138,564 15.8 %
Processing
Tonnes processed 244,773 205,846 18.9 %
Gold head grade (g/t) 1.95 2.42 -19.4 %
Ounces produced
Gold 10,294 7,411(1 ) 38.9 %
Silver 5,113 2,740(1 ) 86.6 %
Crusher throughput (tonnes per day) 3,264 2,745 18.9 %
Recoverable(2) gold (ounces) placed on pad 9,966 10,401 -4.2 %
(1) Production numbers for Q1 2013 were negatively impacted by the prior sale of approximately 1,878 ounces of gold and 759 ounces of silver that were part of a sale of loaded carbon that accelerated production and revenue completed in Q4 2012.
(2) A 65% metallurgical recovery factor has been applied to the estimated contained ounces crushed and placed on the leach pad.

About Scorpio Gold

Scorpio Gold holds a 70% interest in the Mineral Ridge gold mining operation located in Esmeralda County, Nevada with joint venture partner Waterton Global Value L.P. (30%), and is currently entitled to receive 80% of cash flow generated. Mineral Ridge is currently in production as a conventional open pit mining and heap leach operation. The Mineral Ridge property is host to multiple gold-bearing structures, veins and lenses at exploration, development and production stages. Scorpio Gold also holds a 100% interest in the advanced exploration-stage Goldwedge property and processing facility in Manhattan, Nevada. The Company is assessing its exploration plans for the Goldwedge property as well as the potential for toll milling at the Goldwedge plant, which is currently permitted for 400 tons per day.

Scorpio Gold's CEO, Peter J. Hawley, PGeo, is a Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the content of this release.

ON BEHALF OF THE BOARD

SCORPIO GOLD CORPORATION

Peter J. Hawley, CEO

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

The Company relies on litigation protection for forward-looking statements. This news release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur, and include, without restriction, any statements regarding the Company achieving production forecasts for 2014. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements, including risks related to open pit mining and heap leach operations, including unanticipated changes in the mineral content of materials being mined; unanticipated changes in recovery rates; changes in project parameters; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; availability of skilled labour and the impact of labour disputes; delays in obtaining governmental approvals; changes in metals prices; the availability of cash flows or financing to meet the Company's ongoing financial obligations; unanticipated changes in key management personnel; changes in general economic conditions; other risks of the mining industry; and those risk factors outlined in the Company's Management Discussion and Analysis as filed on SEDAR. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty thereof.

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